As Joomla is an extremely extensible content management system you can use it to create a community website. Depending on your needs there are various modules and components that can also be used to enhance the Joomla functionality as a community website.

One of the commonly used component for community Joomla websites is Community Builder. You can check it out on the official Joomla extensions website.

If you wish to use another solution created specifically for community websites a nice alternative is Dolphin. You can check SiteGround Dolphin Tutorial for more information.